Pilot stand-off piles more pressure on El Al
July 06, 2020
Israeli carrier El Al is putting another 400 personnel on furlough after pilots chose not to operate a number of services.
The airline had been operating a limited number of passenger and cargo services from Israel, although its scheduled passenger flights had been suspended until 31 July. But it says the “non-staffing” of flights by the airline’s pilots has forced it to cancel remaining services at least until this date. El Al has been trying to reach an agreement with the Israeli finance ministry for a $400 million loan but requires productivity deals with its employees. The airline is under increasing financial pressure having recorded a heavy first-quarter loss and it has warned that the loan is crucial to its survival. Chief financial officer Dganit Palti says the crisis has resulted in a “serious liquidity problem” at the airline. Palti states that the airline had a substantial cash balance of $264 million at the beginning of the year. But the burden of debt taken on during the fleet modernisation, as El Al replaced its Boeing 767s and 747s with 787s, has been exacerbated by the slump in the airline’s revenues – down 25% in the first three months. “The decrease in fuel prices – which in normal times is a blessing – has led to losses in hedging transactions which, at low consumption rates, are in part not recognised as effective,” says Palti. El Al recorded a charge of $56 million attributed to this situation in the quarter. It has secured agreements to defer lease payments, and increased its liquidity by arranging the sale-and-leaseback of three aircraft. The company has also sold its stake in logistics firm Maman.
Source: Cirium
Qatar Airways mandates face shields for economy passengers
July 03, 2020
All passengers flying with Qatar Airways in economy class will be required to wear face shields as part of health and safety measures announced by the carrier today in response to the risks posed by the coronavirus pandemic. Those shields are in addition to face masks or coverings, and will be provided by the airline. Economy-class passengers must wear shields and masks throughout the flight, the Middle Eastern carrier states, except during drink and meal services. Business-class passengers “are asked to wear their face shield and mask on board at their own discretion, as they enjoy more space and privacy”, the airline says. All passengers will receive a complimentary “protective kit”, which will include a single-use surgical face mask, large disposable gloves and an alcohol-based hand-sanitiser gel. The face shields will be distributed at check-in for Doha-origin flights, and at the gate for overseas-origin departures. Qatar Airways has also confirmed that cabin crew will wear a “new protective gown” in addition to safety glasses, gloves and masks. By mandating face shields, the airline’s measures go beyond those adopted by most other carriers, which tend to focus on face coverings only. “Throughout the COVID-19 crisis, the safety of our passengers has been our highest priority,” states Qatar Airways chief executive Akbar Al Baker. “As the largest international airline flying consistently throughout the pandemic, we have become one of the most experienced in safety and hygiene. We will continue to lead the industry in terms of the services offered to our passengers, so that they can travel with confidence. Al Baker said he expected the global hunger for travel that was important to Qatar Airways’ business model would return, powered by a scientific breakthrough. “The entire scientific community is working to defeat this pandemic and I’m sure there will be a breakthrough that will make people have confidence to travel again,” he said.
Source: Cirium
US government publishes health guidance for airlines and airports
July 03, 2020
The US Departments of Transportation, Homeland Security, and Health and Human Services have jointly published a report outlining recommendations for public safety as the world continues to grapple with the coronavirus pandemic. The document, published on 2 July, is titled “Runway to Recovery: The United States Framework for Airlines and Airports to Mitigate the Public Health Risks of Coronavirus”. It lays out a roadmap for passenger carriers and airports as they try to minimise further transmission of the virus amongst and between passengers, crews and other workers. The roadmap outlines numerous measures the air carriers and airport operators should take “across all operations and all phases of travel to, from, and within the USA, along with a roadmap explaining how those measures should be adapted to the unique air travel environment”, the report says. “This document provides clear guidance to airlines and airports to protect the traveling public, and we encourage people to pay attention to it,” says transportation secretary Elaine Chao. Recommendations include passenger education efforts, social distancing, mandatory face coverings, health assessments, and minimising in-person interaction as well as utilisation of technologies that will support this goal. The DOT has come under increasing pressure to mandate uniform regulations for all airlines as the coronavirus crisis drags on into its fourth month. With the beginning of the summer holiday travel season and more and more regions in the USA lifting shelter-in-place orders, both airlines and airports are expecting passenger numbers to rise. So far, most airlines have implemented their own coronavirus-related protocols, creating confusion and frustration among travellers. Last month several carriers said they would enforce mask-wearing on their flights, and impose no-fly sanctions on those passengers who refuse to comply. Some lawmakers say the recommendations in the report, while well-meaning, are too little too late. Democratic Senators Richard Blumenthal and Edward Markey, members of the Senate’s Commerce, Science, and Transportation Committee, laud the government for presenting the report at all, but criticise it for its “unenforceable and woefully inadequate recommendations”. “We need federally enforceable mandates to keep the travelling public safe,” the senators write on 2 July. "Moreover, this document merely scratches the surface of the many complex questions that we need to address to ensure safe and healthy air travel." In the past several weeks, airlines have brought aircraft out of storage and increased their capacity to both domestic and international destinations. United Airlines, for example, said on 1 July that it was adding 25,000 flights to its August schedule. That said, several southern states like Arizona, Texas and Florida are currently experiencing a spike in new cases, which may cause some vacationers to rethink their plans. Some states have imposed quarantine requirements for those passengers returning from high-case regions. On 2 July the Transportation Security Administration (TSA) says it screened 626,516 passengers the day before. That’s the third-highest daily throughput since the start of the coronavirus pandemic, but still far below the 2.5 million passengers it screened on the same day a year ago.
Source: Cirium